Sales and Use Tax Annotations

Annotation 120.3088

(c) CUSTOM PROGRAMS

120.3088Custom Programming Included in Sale of Computer. Where custom programming is furnished with computer equipment under a lump-sum contract, a reasonable allowance for the nontaxable custom programming must be made. The legislative finding that accompanied the enactment of section 6010.9 stated that sales of custom computer programs are service transactions not subject to tax and that the media used is only incidental to the true object of the transaction. The allowance mentioned above should not be given if the programming consists of modifications to a canned program. In such cases, section 6010.9(d) requires a separate charge for the modifications made. 11/13/84.

Do you have feedback about the BOE website?

Share it with us in the text boxes below!
Please keep in mind that you will not receive a response upon sharing your feedback with us.

If you need help with tax questions, online services, or payment please call the BOE Customer Service Center at 1-800-400-7115.

For your security, please do not include any private information such as social security numbers or contact information when submitting this form.
Thank you for helping us improve the California taxpayers' experience on boe.ca.gov.

Were you able to easily find the information you were seeking?

What changes would you make to this page to improve the user's experience?